INVESTOR DAY. 24 November 2017 Jakarta, Indonesia. Alison Watkins Group Managing Director. Martyn Roberts Group Chief Financial Officer

Transcription

1 2017 INVESTOR DAY 24 November 2017 Jakarta, Indonesia Alison Watkins Group Managing Director Martyn Roberts Group Chief Financial Officer Kadir Gunduz MD Indonesia & PNG Peter McLoughlin MD Australian Beverages Shane Richardson MD Alcohol & Coffee David Akers Group Head of Investor Relations

2 DISCLAIMER Coca-Cola Amatil advises that these presentation slides and any related materials and cross referenced information, may contain forward looking statements which may be subject to significant uncertainties outside of Coca- Cola Amatil s control and matters and events unknown at this time. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Actual future events may vary from these forward looking statements and you are cautioned not to place reliance on any forward looking statement.

3 FRIDAY 24 NOVEMBER: OBJECTIVES UPDATES Group strategy 2017 initiatives and performance Australian Beverages Indonesia Alcohol & Coffee Group outlook Coca-Cola Amatil 2017 Investor Day 3

4 FRIDAY 24 NOVEMBER: SAFETY & HOUSEKEEPING SAFETY & HOUSEKEEPING Safety Evacuation procedure Refreshments Rest rooms Housekeeping Check out Time keeping Webcast Mobiles Wifi Assistance Questions & Answers Rest Rooms Presentations Feedback Transport logistics Lunch Coca-Cola Amatil 2017 Investor Day 4

5 FRIDAY 24 NOVEMBER: BUSES TO AIRPORT BUS 1 Departs Hotel Mulia 14:30 If your plans change please let us know BUS 2 Departs Hotel Mulia 17:00 If your plans change please let us know Coca-Cola Amatil 2017 Investor Day 5

6 2017 INVESTOR DAY 24 November 2017 Jakarta, Indonesia Alison Watkins Group Managing Director Martyn Roberts Group Chief Financial Officer Kadir Gunduz MD Indonesia & PNG Peter McLoughlin MD Australian Beverages Shane Richardson MD Alcohol & Coffee David Akers Group Head of Investor Relations

7 AGENDA 8.30am 8.40am Safety & Housekeeping (10 min) David Akers 8.40am 9.30am 9.30am 10.30am 10.30am 10.45am 10.45am 11.45pm 11.45am 12.00pm 12.00pm 12.30pm 12.30pm 1.15pm 1.15pm 1.45pm 1.45pm 2.15pm Group Overview & Strategy (35 min) Q&A (15 min) Australian Beverages (45 min) Q&A (15 min) Morning Tea (15 min) Indonesia (40 min) Q&A (20 min) Buffer (15 min) Lunch (30 min) Alcohol & Coffee (30 min) Q&A (15 min) Finance Update (20 min) Q&A (10 min) Group Outlook (15 min) Q&A (15 min) Alison Watkins Peter Pod McLoughlin Kadir Gunduz Shane Richardson Martyn Roberts Alison Watkins 2.15pm 2.20pm Close (5 min) David Akers Coca-Cola Amatil 2017 Investor Day 7

8 GROUP OVERVIEW & STRATEGY Alison Watkins Group Managing Director Coca-Cola Amatil 2017 Investor Day 8

9 GROUP: PRESENTATION OVERVIEW OVERVIEW 1. Our vison and our values Our vision and our values give us a clear and optimistic picture of success 2. Our strategy Our Group strategy has three distinct elements Our shareholder value proposition is based on a compelling investment case We have strong brand partners Our approach to sustainability will underpin our future performance updates In 2014 we set clear objectives for our business and have performed well against many elements of our shareholder value proposition In 2017 our businesses are performing well however, we had a challenging start to the year for Australian Beverages We have delivered on our share buyback program and progressed the sale and leaseback of our Richlands facility We are expecting FY17 Group underlying NPAT to be broadly in line with FY16 Coca-Cola Amatil 2017 Investor Day 9

10 OUR VISION AND OUR VALUES GIVE US A CLEAR AND OPTIMISTIC PICTURE OF SUCCESS OUR VISION OUR VALUES Coca-Cola Amatil 2017 Investor Day 10

11 OUR GROUP STRATEGY HAS THREE DISTINCT ELEMENTS PERFORM Primary focus GROW Greater focus LEAD EXECUTE PERFORM GROWTH WITHIN GROWTH BETWEEN GROWTH BEYOND STRONG ORGANISATION Ongoing focus FIT FOR PURPOSE LEADERSHIP REPUTATION AND TRUST Coca-Cola Amatil 2017 Investor Day 11

12 PERFORM: OUR PLANS REFLECT THREE STRATEGIC THEMES LEAD Strengthening category leadership position Leading beverage brands Innovative marketing to drive equity and sales Evolving portfolio that adapts to changing consumer preferences EXECUTE Step change in productivity and in-market execution World-class customer servicing capability Route to market that provides customer diversification and real competitive advantage Effective leverage of our large-scale, low-cost manufacturing, sales and distribution capability PARTNER Better alignment with The Coca-Cola Company and our other partners Shared vision of success and aligned objectives Joint plans for growing system profitability Balanced share of risk and rewards Coca-Cola Amatil 2017 Investor Day 12

13 GROW: WE HAVE MULTIPLE GROWTH PATHWAYS GROWTH WITHIN Additional growth within our businesses Leveraging and extending brands and capabilities (eg our route-tomarket) Building and adding new brands and channels GROWTH BETWEEN Additional growth between our businesses International coffee (eg Indonesia) International beer and rum (eg Fiji to Australia and New Zealand) GROWTH BEYOND Growth beyond our current businesses Additional Coca-Cola territories Extending Amatil brands and capabilities to new geographies Potential acquisitions Coca-Cola Amatil 2017 Investor Day 13

14 STRONG ORGANISATION: UNDERPINS ALL OUR PLANS FIT FOR PURPOSE Develop a fit for purpose organisational and governance structure Creation of a Partner and Growth function to drive growth Creation of a Group Digital Technology function to leverage digitisation and technology strategies across the group Creation of a Property Division to take a group wide approach to all our owned and leased property arrangements LEADERSHIP Drive leader led growth Leadership capability development Invest in our people and create opportunities for growth (eg Indonesian Step and Step Up programs) Build capability to share across all our geographies TRUST AND REPUTATION Build trust and our reputation with stakeholders Enhanced sustainability reporting framework consistent with the GRI G4 framework Improvement in employee engagement over two years Coca-Cola Amatil 2017 Investor Day 14

15 OUR SHAREHOLDER VALUE PROPOSITION IS BASED ON A COMPELLING INVESTMENT CASE INVESTMENT CASE 1. Predominantly a Coca-Cola franchisee with leading brands 2. Route-to-market with scale and reach 3. Large-scale, modern, low-cost infrastructure 4. Steady cash flow from core Australian and New Zealand franchises 5. Growth opportunities including Indonesia and Alcohol & Coffee providing upside Coca-Cola Amatil 2017 Investor Day 15

16 PREDOMINANTLY A COCA-COLA FRANCHISEE WITH LEADING BRANDS NON-ALCOHOLIC ALCOHOLIC Coca-Cola Amatil 2017 Investor Day 16

17 ROUTE-TO-MARKET WITH SCALE AND REACH AND LARGE-SCALE, MODERN, LOW-COST INFRASTRUCTURE Our route-to-market gives us coverage to reach to many customers and add value to relationships. Our capability is underpinned by significant investment in our production assets over many years OUR OPERATIONS OUR INFRASTRUCTURE Australian Beverages New Zealand Fiji Indonesia Papua New Guinea Production facilities Production lines Warehouses Customers* (approx.) 115,000 25,000 3, ,000 10,000 Coolers (approx.) 160,000 40,000 3, ,000 17,000 * Includes outlets served indirectly. Coca-Cola Amatil 2017 Investor Day 17

18 OUR RELATIONSHIP WITH THE COCA-COLA COMPANY The Coca-Cola Company is our primary brand partner and our relationship covers all the markets in which we operate Australia, New Zealand, Fiji, Indonesia, Papua New Guinea and Samoa OUR PARTNER Coca-Cola Amatil 2017 Investor Day 18

19 OUR RELATIONSHIP WITH THE COCA-COLA COMPANY Our relationship is governed by our Bottling Agreements and we have principles that guide and characterise a successful relationship SYSTEM OPERATING MODEL OVERVIEW KEY FUNCTIONS Our relationship with The Coca-Cola Company is governed by Bottlers Agreements we have in the various markets in which we operate. These agreements define the respective rights, and functions of Coca-Cola Amatil and The Coca-Cola Company. We have been a Coca-Cola bottler and distributor since In all the markets where we are The Coca-Cola Company's brand partner, we have in place Bottling Agreements, based on the SIBA (Standard International Bottling Agreements) which govern our relationship. In 2016 we renewed our Australian Bottling Agreement for 10 years Coca-Cola Amatil Product manufacturing Packaging Product distribution Sales Customer execution Exclusivity: agreed Coca- Cola Company products in Australia, New Zealand, Indonesia, Fiji, PNG and Samoa (1) The Coca-Cola Company Product innovation Research & development Supply of concentrates and beverage bases Consumer marketing Exclusivity: agreed products in Australia, New Zealand, Indonesia (1), Fiji, PNG and Samoa RELATIONSHIP PRINCIPLES Agreed strategy and plans Aligned financial incentives Established management routines Complementary skills & organisational structure Growth mindset 1. Exceptions: Northern Sulawesi. Coca-Cola Amatil 2017 Investor Day 19

20 THE COCA-COLA COMPANY IS TRANSFORMING THE COCA-COLA COMPANY IS THE WORLD S LEADING NON-ALCOHOLIC BEVERAGES COMPANY THE COCA-COLA COMPANY & BEVERAGES FOR LIFE Source: The Coca-Cola Company Presentation September 2017 Source: The Coca-Cola Company Presentation September 2017 Coca-Cola Amatil 2017 Investor Day 20

21 THE COCA-COLA COMPANY S FOCUS ON REVENUE GROWTH AND A CONSUMER-CENTRIC PORTFOLIO REVENUE GROWTH AND CONSUMER-CENTRIC PORTFOLIO Source: The Coca-Cola Company Presentation November 2017 Coca-Cola Amatil 2017 Investor Day 21

22 OTHER MAJOR BRAND PARTNERS We have additional partners in the NARTD beverages and the alcoholic beverages industries Coca-Cola Amatil 2017 Investor Day 22

23 OUR APPROACH TO SUSTAINABILITY WILL UNDERPIN OUR FUTURE PERFORMANCE Our focus is on the four areas where we can have the greatest impact OUR PEOPLE WELLBEING ENVIRONMENT OUR COMMUNITY We provide a safe, open, flexible and inclusive workplace where our people are energised by the opportunities they have. We provide choices and the information consumers need to make their choice. We operate responsibly in all we do to minimise our impact on the environment and ensure we deliver a positive lasting legacy. We partner with our communities to deliver a shared benefit from our presence ACHIEVEMENTS 49% reduction in total employee injuries 75% reduction in total days lost to injury 2016 ACHIEVEMENTS Continued reformulation across our portfolio in Australia 14% reduction in Sprite sugar and kj content 23% sugar reduction for LIFT 2016 ACHIEVEMENTS 6.7% improvement in our carbon footprint 4% reduction in water use across NARTD manufacturing 2016 ACHIEVEMENTS $1.1M investment in the Coca-Cola Australia Foundation with The Coca- Cola Company Coca-Cola Amatil 2017 Investor Day 23

24 SUSTAINABILITY IN INDONESIA OUR PEOPLE WELLBEING ENVIRONMENT OUR COMMUNITY ACHIEVEMENTS Investment in leadership capability >20,000 hazards reported Safety framework requirements and standards training across multiple training modules 25% of management roles held by women ACHIEVEMENTS Introduction of smaller portion sizes 390mL Coca-Cola, Fanta and Sprite 350mL Frestea Continue to adhere to responsible marketing guidelines Provision of clear information ACHIEVEMENTS 10 th year of the Bali Beach clean-up 34k tonnes of rubbish from removed from five beaches in Bali 7 th year of the turtle conservation program 46,000 trees donated to support reforestation 2.74m litres of rainwater harvested at Cibitung ACHIEVEMENTS Skills training for 83 women living in disadvantaged areas in Bali Funded more than 100 student scholarships Coca-Cola Amatil 2017 Investor Day 24

25 SAFETY FOCUS AND OUR CONTRIBUTION SAFETY PERFORMANCE Annual Total Recordable Injury Frequency Rate (TRIFR) OUR CONTRIBUTION Coca-Cola Amatil 2017 Investor Day 25

26 2017 UPDATES Coca-Cola Amatil 2017 Investor Day 26

27 IN 2014 WE SET CLEAR OBJECTIVES FOR OUR BUSINESSES AUSTRALIA Stabilise earnings and return to growth NEW ZEALAND Deliver steady earnings and volume growth INDONESIA & PNG Expand our market to realise the market s potential ALCOHOL & COFFEE Continue to build our portfolio in Australia and New Zealand SPC Invest to restore SPC to a profitable, modern food business Earnings stabilisation has proved challenging; despite cost optimisation and reinvestment Earnings and volume growth on track Earnings growth on track; macro conditions challenging Earnings growth on track; investing in the business to continue growth Investment on track; profitability challenging Coca-Cola Amatil 2017 Investor Day 27

28 PROGRESS AGAINST OUR SHAREHOLDER VALUE PROPOSITION Overall, we have made solid progress over the past three years against many elements of our shareholder proposition, however, have been challenged in Australian Beverages EBIT drivers EPS drivers Targeting shareholder value creation Revenue growth plans and continuous cost focus across the group Modest capex for developed markets FY15 FY16 HY17 Mid singledigit EPS growth FY15 FY16 HY17 + Targeting low single-digit EBIT growth Targeting double-digit EBIT growth Targeting double-digit EBIT growth + + Australia New Zealand Indonesia Papua New Guinea Fiji Alcohol & Coffee SPC FY15 FY15 FY15 FY16 FY16 FY16 HY17 HY17 HY17 Growth capex for Indonesia funded via TCCC equity injection Continuous working capital management Bolt-on acquisitions Capital management initiatives + + FY15 FY16 HY17 FY15 FY16 HY17 FY15 FY16 HY17 Attractive dividends: above 80% payout ratio Strong balance sheet Strong ROCE FY15 FY16 FY15 FY16 HY17 HY17 Coca-Cola Amatil 2017 Investor Day 28

29 2017: AUSTRALIAN BEVERAGES ASSESSMENT External Trends continue (consumer, customer) Pace accelerating Deflation and costs of good sold pressure Container deposit scheme uncertainty Internal Solid progress on costs Portfolio rebalancing must accelerate Increase specialisation and investment in route-to-market The Coca-Cola Company New leadership and strategy Tighter alignment essential to accelerate change 2017 RESPONSE Intensive joint effort and collaboration amplifying and expanding existing plans to develop, and commence the implementation, of an Accelerated Australian Growth Plan Accelerated Australian Growth Plan builds on our Lead, Execute, Partner strategy and capitalises on The Coca-Cola Company s Beverages for Life strategy Amplified focus on collaboration and aligned partnership principles Coca-Cola Amatil 2017 Investor Day 29

30 2017: LEADERSHIP UPDATES MANAGEMENT Australian Beverages Peter McLoughlin appointed interim MD earlier this year; search process for permanent MD well advanced Steve Paddis (NZ CFO) appointed to Australian Beverages CFO role, commencing February 2018 IT and digital capability New Group Chief Information Officer (Group Leadership Team) and Chief Digital Officer roles created and internal appointments made Debbie Nova will commence in Group CIO role in January 2018 Sam Mitchell will commence in Chief Digital Officer in January 2018 BOARD Search for an additional Non-Executive Director is well advanced, targeting experience in fast moving consumer goods industry to complement existing skills on the board Recent meetings with the Board and Management of The Coca-Cola Company in Atlanta Coca-Cola Amatil 2017 Investor Day 30

31 2017: ADDITIONAL INITIATIVES SHARE BUYBACK PROGRAM $350 million Share buyback program announced in February Program completed on 9 November 2017 Acquired 39.6 million shares at an average price of $8.84 Resulting in 723,989,498 shares on issue RICHLANDS FACILITY SALE AND LEASEBACK Sale of Richlands facility in Queensland announced in June Sale due to settle on 1 December 2017 Proceeds of approximately $156 million will result in a one-off gain of approximately $100 million before tax in 2H17 Expected that this will be substantially realised as profit after tax due to the utilisation of capital losses Coca-Cola Amatil 2017 Investor Day 31

32 2017: EARNINGS UPDATE GROUP UNDERLYING NPAT Expecting FY17 underlying NPAT to be broadly in line with FY16 AUSTRALIAN BEVERAGES Challenging start to the year Improved recent revenue trajectory through new product launches and customer wins Delivering on cost optimisation program Subject to the impact of the New South Wales container deposit scheme commencing 1 December 2017 INDONESIA Recent macroeconomic conditions challenging with soft consumer offtake affecting our categories OTHER BUSINESSES Continuing to deliver growth in line with our expectations Coca-Cola Amatil 2017 Investor Day 32

33 GROUP: PRESENTATION SUMMARY SUMMARY 1. Our vison and our values Our vision and our values give us a clear and optimistic picture of success 2. Our strategy Our Group strategy has three distinct elements Our shareholder value proposition is based on a compelling investment case We have strong brand partners Our approach to sustainability will underpin our future performance updates In 2014 we set clear objectives for our business and have performed well against many elements of our shareholder value proposition In 2017 our businesses are performing well however, we had a challenging start to the year for Australian Beverages We have delivered on our share buyback program and progressed the sale and leaseback of our Richlands facility We are expecting FY17 Group underlying NPAT to be broadly in line with FY16 Coca-Cola Amatil 2017 Investor Day 33

34 QUESTIONS Alison Watkins Coca-Cola Amatil 2017 Investor Day 34

35 APPENDIX Coca-Cola Amatil 2017 Investor Day 35

36 COCA-COLA AMATIL GROUP OVERVIEW Publicly listed Australian company (ASX: CCL) Market capitalisation approximately $5.9B (8 Nov 2017) Top 10 Coca-Cola bottler globally FY16 Revenue $5.25B FY16 Underlying EBIT $683.4M FY16 Underlying NPAT $417.9M Investment grade credit ratings (A3/ BBB+) INDUSTRY AND MARKETS Non-alcoholic ready to drink beverages in Australia, New Zealand, Fiji, Samoa, Indonesia, Papua New Guinea Alcohol and coffee beverages in Australia, New Zealand and Fiji with additional export potential Food products through SPC, predominantly in Australia REPORTING SEGMENTS Australian Beverages New Zealand & Fiji Indonesia & Papua New Guinea Alcohol & Coffee Corporate, Food & Services Coca-Cola Amatil 2017 Investor Day 36

37 FY16 SEGMENTS FY16 $million / MUC % of Group Revenue (1) % of Group NARTD Volume (2) % of Group EBIT (1) Australian Beverages 52% 52% 67% New Zealand & Fiji 11% 11% 15% Indonesia & Papua New Guinea 20% 37% 10% Alcohol & Coffee 10% 7% Corporate, Food & Services 7% 1% 1. Prior to segment adjustment for Property Division. 2. Does not include Alcohol & Coffee or Corporate Food & Services. Coca-Cola Amatil 2017 Investor Day 37

38 AUSTRALIAN BEVERAGES Peter McLoughlin Managing Director Australian Beverages Coca-Cola Amatil 2017 Investor Day 38

39 AUSTRALIAN BEVERAGES: PRESENTATION OVERVIEW OVERVIEW 1. Australian Beverages overview Australian Beverages is a strong business with significant competitive advantages The Australian NARTD beverages market is in growth We need to move faster to rebalance our portfolio 2. Accelerated Australian Growth Plan Our Accelerated Australian Growth Plan builds on our Lead, Execute, Partner strategy, amplifies several initiatives already in place and is underpinned by joint commitments with Coca-Cola South Pacific and an increased focus on revenue growth The accelerated reinvestment in 2018 of ~$40 million of cost savings which will be allocated towards initiatives covering increases in marketing, execution, cold drink equipment, digital technology and price 3. Container deposit schemes Australian Beverages near term earnings will also be impacted by the implementation of container deposit schemes in NSW, Queensland, ACT and Western Australia 4. Outlook Our plans are growth-led and consistent with the low single digit earnings delivery objective, however more time is required to deliver The near term earnings (next 2-3 years) outlook will be impacted by accelerated reinvestment of cost savings to support our strategy and the uncertain impact of container deposit schemes The additional ~$40 million of investment in 2018 is not expected to be offset with cost savings in 2018 Our plan is to restore Australian Beverages to revenue and earnings growth but the accelerated reinvestment will have a negative impact on earnings in 2018 Cost of goods sold inflation is expected to be benign in 2018 Coca-Cola Amatil 2017 Investor Day 39

40 AUSTRALIAN BEVERAGES OVERVIEW Coca-Cola Amatil 2017 Investor Day 40

41 Share WE HAVE STRONG MARKET POSITIONS AND A PORTFOLIO OF LEADING AND CHALLENGER BRANDS We have strong market positions and a portfolio of category leading and strong challenger brands to target opportunities and pursue growth Market value composition (1) and Coca-Cola Amatil Share Category leading brands 100% 50% Strong challenger brands 0% Cola Flavours Adult Energy Dairy Juice Water Sports Tea Category size 1. Market data. Sources: Aztec Australian Grocery Weighted and AU Convenience scan for MAT to end H Coca-Cola Amatil 2017 Investor Day 41

42 THE AUSTRALIAN NARTD BEVERAGE MARKET IS IN GROWTH The Australian NARTD beverages market (1) is growing, albeit different trends across categories NARTD market value (1) Market and category growth rates 2015 to % 5.0% 0.0% -5.0% 1. Market data. Combined Grocery and Convenience scan data (Australian Grocery Weighted and AU Convenience scan). 12 months to 1H15 and 12 months to 1H17. INSIGHTS The NARTD beverage market has grown 1.4 per cent per annum in value over the past two years The underlying decline in sparkling beverages is 1.4 per cent per annum in value over the past two years There is significant growth in a number of categories including value added dairy, traditional and enhanced water, energy and adult sparkling Prices per unit have declined by ~2.0 per cent in the 12 months to 1H17, driven by overall shift to water and, in particular, growth in value water Coca-Cola Amatil 2017 Investor Day 42

43 WE NEED TO MOVE FASTER TO REBALANCE OUR PORTFOLIO While we hold a strong position in sparkling, traditionally we have not been as strong in a number of stills categories NARTD market value composition (1) and Coca-Cola Amatil s value composition (2) Market value composition (1) Coca-Cola Amatil value composition (2) INSIGHTS The NARTD beverages market is split approximately 40:60 between sparkling and still beverages on a value basis (1) Australian Beverages split is approximately 70:30 between sparkling and still beverages on a value basis (2) 12 months to H Sparkling 12 months to H Stills 12 months to H Sparkling 12 months to H Market data. Combined Grocery and Convenience scan data (Australian Grocery Weighted and AU Convenience scan). 12 months to 30 June 2015 and 12 months to 30 June Coca-Cola Amatil data includes all channels. 12 months to 30 June 2015 and 12 months to 30 June Stills Australian Beverages proportion of stills value increased slightly in 2016 but is flat between 2015 and 2017 we need to move faster The NARTD beverages market value proportion of stills has increased 3 percentage points in the past two years Coca-Cola Amatil 2017 Investor Day 43

44 PRICING BETWEEN CATEGORIES Our growth is orientated towards higher net sales revenue per case categories Coca-Cola Amatil 1H17 Average Revenue Per Case 250% 200% 150% 100% 50% INSIGHTS A shift in demand from sparkling beverages to non-sparkling beverages is not necessarily dilutive Frozen, value water and traditional water being the exceptions Several growth categories have significant revenue upside potential 0% 1. Coca-Cola Amatil Ex-factory, all channels, excluding Neverfail. 6 months to 30 June Coca-Cola Amatil 2017 Investor Day 44

45 ACCELERATED AUSTRALIAN GROWTH PLAN Coca-Cola Amatil 2017 Investor Day 45

46 ACCELERATED AUSTRALIAN GROWTH PLAN BUILDS ON OUR STRATEGY AND AMPLIFIES OUR COMMITMENT Our Accelerated Australian Growth Plan builds on our Lead, Execute, Partner strategy and is underpinned by an increased commitment to revenue growth LEAD EXECUTE PARTNER LONGER TERM PLANNING HORIZON Greater innovation pipeline and bringing products to market more quickly JOINT STRATEGY AND INVESTMENT Joint strategy with Coca-Cola South Pacific Plan with aligned targets Long term commitment on investment REVENUE FOCUS & BEVERAGES FOR LIFE Beverages for Life vision and move towards a balanced portfolio Coca-Cola Amatil 2017 Investor Day 46

47 PORTFOLIO BREADTH DEVELOPING THE ACCELERATED GROWTH PLAN During 2017 we have worked closely with Coca-Cola South Pacific to challenge and strengthen our plans, culminating in the development of the Accelerated Australian Growth Plan LEAD Categories beyond our current portfolio PORTFOLIO EXPANSION OPPORTUNITIES Categories within our current portfolio CORE OPERATIONS AND EXECUTION OPPORTUNITIES Core portfolio Established off-premise channels, RECA and sizable on-premise DIRECT CHANNEL REACH EXECUTE Tail of un-serviced and fragmented outlets (~30% of value and 55% of outlets) Coca-Cola Amatil 2017 Investor Day 47

48 PORTFOLIO BREADTH DEVELOPING THE ACCELERATED GROWTH PLAN During 2017 we have worked closely with Coca-Cola South Pacific to challenge and strengthen our plans, culminating in the development of the Accelerated Australian Growth Plan LEAD Categories beyond our current portfolio PORTFOLIO EXPANSION OPPORTUNITIES C ENTER NEW CATEGORIES CLOSE THE GAP CREATE NEW GAPS Categories within our current portfolio CORE OPERATIONS AND EXECUTION OPPORTUNITIES B DOUBLE DOWN IN GROWTH AREAS D PRECISION AVAILABILITY AND ACTIVATION A Core portfolio STABILISE THE CORE DIRECT CHANNEL REACH Established off-premise channels, RECA and sizable on-premise EXECUTE Tail of un-serviced and fragmented outlets (~30% of value and 55% of outlets) Coca-Cola Amatil 2017 Investor Day 48

49 OUR ACCELERATED AUSTRALIAN GROWTH PLAN Our joint plan focusses on stabilising the core, targeting growth areas and delivering improved execution in existing and new channels STRATEGY LEAD EXECUTE PARTNER AMBITION Maintain #1 NARTD position, winning NARTD market value growth A broad, innovative consumer-centric portfolio and best-in-market execution Make the Total Beverages Company strategy a market reality A. STABILISE THE CORE B. DOUBLE DOWN IN GROWTH AREAS C. CLOSE THE GAP C. CREATE NEW GAPS D. PRECISION AVAILABILITY AND ACTIVATION ACTIONS Drive sparkling acceptance and hold ground in critical categories Accelerated share gain in high value growth categories Fast track entry into other categories organically or through M&A Lead the emergence of new categories Get the right portfolio in every outlet using a range of route-tomarket models LEAD BRANDS & INITIATIVES Enter established categories where we are not currently participating Create new gaps in emerging categories or new categories Win in RECA and IC Digital platforms Segmented execution Coca-Cola Amatil 2017 Investor Day 49

50 STABILISE THE CORE We have a strong plan across categories, focussed on driving sparkling acceptance and holding ground in other critical categories STABILISE THE CORE COLA FLAVOURS WATER SPORTS TEA / JUICE Increase frequency of rotational flavours Pack innovation for occasions Occasional based marketing with call to action Continue to develop options that shape choice Updates / examples Launch of Coca-Cola No Sugar and Coca-Cola Plus Coffee Targeted price investment to drive competitiveness Promote choice by strengthening the No Sugar range Targeted price investment to drive competitiveness Targeted growth of premium water distribution New product development and participate across the portfolio from value through to premium water Improved price competitiveness Expanding portfolio Continue to optimise mix and promotional pricing Rebuild volume per outlet with value add initiatives Additional pack sizes Redefining the consumer proposition Imminent relaunch of tea range Transition to Keri and additional portfolio development New juice products Investing in additional capability Coca-Cola Amatil 2017 Investor Day 50

51 STABILISE THE CORE Significant new product launches in 2017 with Coca-Cola No Sugar and Coca-Cola Plus Coffee with more activity in the pipeline targetting to stabilise the core INNOVATING IN SPARKLING BEVERAGES EXPANDING PORTFOLIO IN STILL BEVERAGES Coca-Cola No Sugar ~28% of Sparkling Beverage consumers in Australia have consumed a Coca-Cola No Sugar (1) ~39% have consumed a Coca-Cola No Sugar more than once (1) Already achieved penetration in state outlets of ~74% Launched 14 June Coca-Cola Plus Coffee Single pack SKUs in top 20% of all NARTD launches in 2016 & 2017 Attracting new and lapsed consumer back to sparkling beverages Additional Sparkling Beverage products Launch of additional rotational flavours to attract lapsed consumers and new consumers Launched 26 September 1. As at HY17 results. Coca-Cola Amatil 2017 Investor Day 51

52 STABILISE THE CORE Priority objectives utilising our leading multi-segment water portfolio MOUNT FRANKLIN LIGHTLY SPARKLING PRIORITIES Launched September Targeted price investment in value and mainstream water in grocery to increase competitiveness 2 Targeted growth of water distribution in state operational accounts, including HORECA Still Water Grocery penetration: ~100% State operational accounts penetration: ~76% HORECA penetration: ~42% Mount Franklin Lightly Sparkling Grocery penetration: ~100% State operational accounts penetration: ~39% HORECA penetration: ~26% 3 Additional new products in enhanced and premium water brands in 2H17 Coca-Cola Amatil 2017 Investor Day 52

53 STABILISE THE CORE We have introduced a more comtemporary offer in the juice category with the launch of Keri Juice Blenders and subsequent ranage expansion LAUNCH OF KERI JUICE BLENDERS EXPANDED THE RANGE Launched on 30 June Above target penetration in state immediate consumption and HORECA at ~38% Volume per outlet already exceeding previous juice offering High re-order rate Supplying to major national chain customers Expanded the range in October with the launch of additional variant Apple, Pear, Cucumber & Kale Launched 5 October 2017 Launched 30 June 2017 Coca-Cola Amatil 2017 Investor Day 53

54 DOUBLE DOWN IN GROWTH AREAS We are focussed on accelerating share gain in high value growth categories DOUBLE DOWN IN GROWTH AREAS ADULT ENERGY VALUE ADDED DAIRY Focus on RECA penetration and bespoke activation Expanded range development and develop relevance in alcohol mixing occasions Updates / examples Increase promotional programs, supported by inoutlet activation Increase penetration New product development Expanding the portfolio Up-weighted media focused on demand creation Increase penetration and drive trial Expand range with additional products and targets Expanding the portfolio Investing in additional capacity Coca-Cola Amatil 2017 Investor Day 54

55 DOUBLE DOWN IN GROWTH AREAS We are targetting additional growth in the energy category through the launch of additional products and increasing penetration with more cold drink equipment MONSTER ENERGY EXPANDING THE RANGE Commenced arrangement in May 2016 Expanded the range from 4 SKUs to 7 with Sunrise, Assault and The Doctor Launched September 2016 Launched April 2017 Launched September coolers placed in the market since 2016 with another ~500 planned Monster Energy - #1 driver of Energy category growth within Australia with NPD a critical contributor Coca-Cola Amatil 2017 Investor Day 55

56 DOUBLE DOWN IN GROWTH AREAS We are expanding the existing portfolio, incresing penetration in additional channels and investing in additional value added dairy capacity BARISTA BROS EXPANDED THE RANGE First launched in Australia in 2014 with only two SKUs Added two flavours Double Espresso (2015) and Mochaccino (2017) Added additional pack sizes in 2017 with exciting pack and innovation planned for 2018 Targeting Petrol & Convenience channel Additional marketing spend in 2017 and further increase planned for additional coolers placed in the market since 2016, targeting a total of ~1,000 in market for 2018 and 2019 Investing in additional capability and capacity Coca-Cola Amatil 2017 Investor Day 56

57 CLOSE THE GAP AND CREATE NEW GAPS We are targeting to enter into emerging categories and leading the emergence of new categories CLOSE THE GAP AND CREATE NEW GAPS INNOVATION M&A Coca-Cola Amatil 2017 Investor Day 57

58 EXECUTE PRECISION AVAILABILITY AND ACTIVATION Getting the right portfolio in every outlet using a range of route-to-market models TRADITIONAL ROUTE-TO- MARKET DIGITAL ROUTE-TO-MARKET NEW AND EMERGING ROUTE- TO-MARKET Segmented execution driving tailored customer service packages More stores and more doors strengthening our reach Innovative customer centric logistics solutions Extend our leadership as the #1 beverage supplier in digital B2B / B2C within a clicks reach of desire Evolve the National Sales Centre into the next generation customer experience Establish marketplace partnerships with digital aggregators Coca-Cola Amatil 2017 Investor Day 58

59 EXECUTE SEGMENTED EXECUTION: A TAILORED APPROACH TO DIFFERENT OUTLETS We have redefined our segmentation and are implementing a more tailored approach recognising outlet characteristics and drivers SEGMENTATION PROCESS SEGMENTING OUTLETS INTO CHANNELS AND SEGMENTS TAILORED CUSTOMER SERVICE PACKAGES Shopper Mission (with vs without food) Customer type Consumer preference (hydration need) Product range (category share of shelf) Immediate Consumption Channel 8 Segments Reca 6 Segments Mainstream café, Speciality Café, Premium Café Mainstream Restaurant, Contemporary, Premium Licensed On/Off premise Integrated venues Retail Corporate & Independent Grocery Convenience & Petroleum Package Options Sales Policy Order Method Pricing Delivery Solutions Credit Loyalty Programs Portfolio Activation Equipment PicOS Coca-Cola Amatil 2017 Investor Day 59

60 EXECUTE EXAMPLE: RECA OPPORTUNITY VIDEO Coca-Cola Amatil 2017 Investor Day 60

61 EXECUTE EXAMPLE: RESTAURANT AND CAFE OPPORTUNITY Targeting to significantly improve our reach and performance in the Restaurant and Cafe channel as it continues to grow OPPORTUNITY DIFFERENTIATION TAILORED RANGE We estimate that there are approximately 35,000 Restaurants and Cafe outlets in Australia This has grown by approximately 5 per cent per annum for the past 3 years by outlet number It is expected to continue to grow at 5 per cent per annum We currently directly service approximately 14,500 of the existing outlets We are targeting to directly service approximately half of the available outlet base by 2020 Not all Restaurants and Cafe outlets are the same Breakfast / morning coffee: in café and on the go Lunch-time: in café / restaurant and on the go from café Evening meals: in restaurant and on the go / takeaway / delivery Opportunity to leverage our nonalcoholic ready to drink portfolio and our alcohol and coffee portfolio Coca-Cola Amatil 2017 Investor Day 61

62 EXECUTE INVESTMENT TO SUPPORT OUR ACCELERATED AUSTRALIAN GROWTH PLAN Investment is required to deliver the Accelerated Australian Growth Plan which will be funded through accelerated reinvestment from our cost optimisation program PRICE MARKETING EXECUTION COLD DRINK EQUIPMENT DIGITAL TECHNOLOGY Additional targeted investment in price to drive competitiveness Additional marketing expenditure across all categories and channels Also supported by increase in Coca-Cola South Pacific s marketing expenditure Additional resourcing to target new business RECA new business Additional cold drink equipment tailored for channel, category and product specific purposes Advanced analytics Next generation CRM and supply chain Streamlined finance Complete labour management Coca-Cola Amatil 2017 Investor Day 62

63 EXECUTE SIGNIFICANT PROGRESS DELIVERING COST OPTIMISATION We have been successful in identifying and delivering on cost optimisation initiatives and are accelerating the closure of Thebarton to the end of ST $100M TARGET Supply chain optimisation Procurement optimisation Support services optimisation Delivered ahead of schedule 2 ND TARGET OF AT LEAST $100M Supply chain of the Future Merchandising and salesforce restructure Procurement optimisation Support services optimisation On track $20M TARGET Closure of South Australian manufacturing facilities Close brought forward to occur by the end of 2018 Accelerated INDICATIVE TIMING st $100M Announced Oct14 Delivered ahead of schedule 2 nd $100M Announced Oct16 At least a further $100 million cost optimisation ~$20M Announced Feb17 Accelerated Coca-Cola Amatil 2017 Investor Day 63

64 EXECUTE ACCELERATING OUR REINVESTMENT We will bring forward ~$40 million of reinvestment from the expected cost savings in 2019 to invest against the initiatives in our Accelerated Australian Growth Plan in 2018 Indicative profile of cost optimisation and accelerated reinvestment Cost Optimisation ~$45M ~$35M ~$20 ~$20M Accelerated ~$20M Total ~$120M Cost savings COMMENTARY We have previously aimed to reinvest the cost savings in the year it was expected to be delivered Decision to bring forward ~$40 million of reinvestment from the expected cost savings in 2019 and 2020 Reinvestment ~$45M ~$35M ~$40M ~$20M ~$20M Total ~$120M Reinvestment The additional ~$40 million of investment in 2018 will be allocated towards initiatives covering increases in marketing, execution, cold drink equipment, digital technology and price Accelerated reinvestment $100M Target $20M Target Reinvestment Reinvestment brought forward The additional ~$40 million of investment in 2018 is not expected to be offset with cost savings in 2018 Our plan is to restore Australian Beverages to revenue and earnings growth but will have a negative impact on earnings in 2018 Coca-Cola Amatil 2017 Investor Day 64

65 EXECUTE SIGNIFICANT INVESTMENT IN OUR RICHLANDS FACILITY IN QUEENSLAND Approximately $170 million of capital expenditure to drive capacity and capability improvements at our Richlands facility in Queensland Indicative profile of capital expenditure to drive initiatives at our Richlands facility in Queensland COMMENTARY ~$80M Richlands Warehouse Automation Projects ~$90M Richlands Capacity & Capability Investment Indicative Capital Expenditure ~$75M ~$85M ~$10M Total Capex ~$170M First announced these initiatives in October 2016 and February 2017, and updated in August 2017 Significant investment in our supply chain and manufacturing capability Additional capacity in value added dairy and juice lines supporting initiatives in the Accelerated Australian Growth Plan for Double Down in Growth Areas Indicative capital investment timings Warehouse automation: predominantly 2H17 and 1H18 Capacity and capability investment: predominantly 2018 This capital expenditure is included in the total Group capital expenditure forecast provided in the Group capex forecast Coca-Cola Amatil 2017 Investor Day 65

66 EXECUTE RICHLANDS AUTOMATED WAREHOUSE The project is on track to be delivered in the first half of 2018 OVERVIEW SITE MAP ~$80M investment Currently leasing offsite warehouse Capex to build new fully automated warehouse on the site of existing manufacturing plant Targeting Reduction in handling costs Reduction in warehouse operating costs Reduction in truck movements Status On track for completion in 1H18 Coca-Cola Amatil 2017 Investor Day 66

67 EXECUTE RICHLANDS AUTOMATED WAREHOUSE The project is on track to be delivered in the first half of 2018 VIDEO Coca-Cola Amatil 2017 Investor Day 67

68 CONTAINER DEPOSIT SCHEMES Coca-Cola Amatil 2017 Investor Day 68

69 CONTAINER DEPOSIT SCHEMES OVERVIEW Container deposit scheme for New South Wales, and proposed schemes for the Australian Capital Territory, Queensland and Western Australia NT Introduced 2012 WA Targeting implementation 2019 SA Introduced 1977 QLD Targeting implementation July 2018 NSW Targeting implementation 1 December 2017 ACT Targeting implementation first half 2018 VIC No Scheme Announced TAS No Scheme Announced Coca-Cola Amatil 2017 Investor Day 69

70 CONTAINER DEPOSIT SCHEMES UPDATES Australian Beverages near term earnings will be impacted by the implementation of container deposit schemes in NSW, Queensland, ACT and Western Australia NEW SOUTH WALES Overview 10 cent refund for eligible containers Handling and administration fees to also be charged Commencing on 1 December 2017 Costs The Scheme Coordinator commenced charging beverage suppliers from 1 November It has also advised beverage suppliers of the estimated fees it will charge in December 2017 and January 2018 Actions We have increased our prices by 13.6 cents (excluding GST) to recover the estimated costs of the scheme Our price increases to customers are being transparently itemised on invoices Some volatility in customer ordering in NSW in October / November, but still very early in implementation OTHER STATES Queensland Targeting implementation July 2018 Amatil actively participating in industry consultation ACT Targeting implementation first half 2018 Intend to harmonise operations with NSW scheme Western Australia Targeting implementation early 2019 Victoria & Tasmania Indicated not considering the introduction of a container deposit scheme Coca-Cola Amatil 2017 Investor Day 70

71 AUSTRALIAN BEVERAGES: OUTLOOK & SUMMARY OUTLOOK Our plans are growth-led and consistent with the low single digit earnings delivery objective, however more time is required to deliver The near term earnings (next 2-3 years) outlook will be impacted by accelerated reinvestment of cost savings to support our strategy and the uncertain impact of container deposit schemes The additional ~$40 million of investment in 2018 is not expected to be offset with cost savings in 2018 Our plan is to restore Australian Beverages to revenue and earnings growth but the accelerated reinvestment will have a negative impact on earnings in 2018 Cost of goods sold inflation is expected to be benign in 2018 SUMMARY 1. Australian Beverages overview Australian Beverages is a strong business with significant competitive advantages The Australian NARTD beverages market is in growth We need to move faster to rebalance our portfolio 2. Accelerated Australian Growth Plan Our Accelerated Australian Growth Plan builds on our Lead, Execute, Partner strategy, amplifies several initiatives already in place and is underpinned by joint commitments with Coca-Cola South Pacific and an increased focus on revenue growth The accelerated reinvestment in 2018 of ~$40 million of cost savings which will be allocated towards initiatives covering increases in marketing, execution, cold drink equipment, digital technology and price 3. Container deposit schemes Australian Beverages near term earnings will also be impacted by the implementation of container deposit schemes in NSW, Queensland, ACT and Western Australia Coca-Cola Amatil 2017 Investor Day 71

72 QUESTIONS Peter McLoughlin & Alison Watkins Coca-Cola Amatil 2017 Investor Day 72

73 INDONESIA Kadir Gunduz Managing Director Indonesia & PNG Coca-Cola Amatil 2017 Investor Day 73

74 INDONESIA: PRESENTATION OVERVIEW OVERVIEW 1. Indonesia overview The Indonesian economy is large and growing Indonesia will be a top five global economy by 2050 Apart from some recent disruption, NARTD growth has been strong, in line with GDP 2. Our position With our partner, we are long term operators in Indonesia Our geographic and customer reach and multi-category approach give us unique advantages 3. Accelerate to Transform In 2014 we committed to the Accelerate to Transform strategy We made important changes to improve our relationship, including welcoming The Coca-Cola Company as a direct shareholder in Coca-Cola Amatil Indonesia Our execution has been strong since 2014 and we have a much leaner and more productive business, albeit growth has been slower than we targeted Coca-Cola Amatil 2017 Investor Day 74

75 INDONESIA OVERVIEW Coca-Cola Amatil 2017 Investor Day 75

76 INDONESIA IS FORECAST TO HAVE THE FOURTH LARGEST ECONOMY IN 2050 INDONESIA IN 2050 (1) PROJECTED GDP RANKINGS (1) 1. Source: PWC report 1. Source: PWC report Coca-Cola Amatil 2017 Investor Day 76

77 Household Split Age Range Indonesia GDP per Capita (IDR M) Indonesia Personal disposable Income per Capita (IDR M) FAVOURABLE DEMOGRAPHICS AND GROWING AFFLUENCE WILL TRANSLATE TO STRONG GROWTH Gross domestic product per capita 13 per cent CAGR since 2000 Disposable income growth 12 per cent CAGR since Growing affluent and middle class Favourable age demographic 2% 3% 53% 44% 61% 36% 6% 75% 19% F Lower (<US$5,000pa) Middle (US$5,000-$25,000pa) Upper (>US$25,000) -5.00% -3.00% -1.00% 1.00% 3.00% 5.00% Male Female 63M Coca-Cola Amatil 2017 Investor Day 77

78 THE ECONOMY IS EXPECTED TO BE STRONG AND RELATIVELY STABLE OVERALL Gross domestic product Personal consumption expenditures Inflation Currency: Indonesian Rupiah to US dollar ,328 13,899 13,711 13,438 13,408 13,512 13,663 13,824 13, Source: Information Handling Sources Coca-Cola Amatil 2017 Investor Day 78

79 SHORT TERM CHALLENGE WITH SUBDUED CONSUMER SPENDING Food and commercial beverage spending has slowed in 2017 as consumers adjusted to specific factors including subsidy changes INDONESIAN GROWTH (1) REASONS 13% 1% Total Indonesia 15% 4% 7% -5% 17% 6% 12% -1% Modern Trade Supers/Hypers Minimarts Traditional Trade Reduction of subsidies and electricity price increases along with price rises placed stress on already challenged household budgets Despite consumers remaining optimistic the average propensity to consume reduced and the savings to income ratio increased Household consumption which grew by <5% for the 4 th consecutive quarter was lower than forecast The Bureau of Statistics attributed the consumption weakness to declining purchasing power among middle and lower-income groups affected by slower wage increases and rising cost of living expenses 1. Source: Nielsen YTD Sep'16 YTD Sep'17 Coca-Cola Amatil 2017 Investor Day 79

80 Volume (Mucs) INDONESIAN NARTD MARKET GROWTH Apart from the recent slowdown, the NARTD market has grown strongly since 2003 consistent with the overall economy NARTD MARKET (EXCLUDING WATER) 1,200 CAGR 11.7% CAGR -1.2% 1, Energy 600 Isotonic Dairy 400 Sparkling Juice 200 RTD-Tea F 1. Source: Canadean, The Coca-Cola Company estimates. Excludes water. Coca-Cola Amatil 2017 Investor Day 80

81 INDONESIAN NARTD MARKET The market is fragmented with many recent entrants, mostly single category focussed with additional minor plays in other categories COMPETITIVE OVERVIEW Source: Nielsen & Coca-Cola Amatil Indonesia internal estimates Coca-Cola Amatil 2017 Investor Day 81

82 INDONESIAN COMPETITORS The growth potential of the market has attracted many additional competitors NARTD INDUSTRY STRUCTURE (EARLY 2000s) NARTD INDUSTRY STRUCTURE Ades was acquired by The Coca-Cola System in Coca-Cola Amatil 2017 Investor Day 82

83 OUR POSITION Coca-Cola Amatil 2017 Investor Day 83

84 WE ARE LONG TERM OPERATORS IN INDONESIA With our partner, we are long term operators in Indonesia. Coca-Cola Amatil is celebrating 25 years in Indonesia COCA-COLA IN INDONESIA Coca-Cola invented Coca-Cola enters Indonesia Coca-Cola Amatil enters Indonesia Full ownership of Coca-Cola Packaging & Distribution Businesses in Indonesia 1 The Coca-Cola Company acquires 29.4% interest in Indonesian business Accelerate to Transform Strategy 1904 Coca-Cola Amatil parent company established Indonesia gains independence CCAI introduces PET packaging Acquisition of Cikedokan Plant, West Java 2017 Pandaan Mega DC and Preform Manufacturing Facility opened, New ASSP Production Line at Cikedokan Plant 1. Excluding Manado region of Northern Sulawesi. Coca-Cola Amatil 2017 Investor Day 84

85 Share OUR MARKET SHARE While we are very strong in the sparkling category we only have 14 per cent share of the overall NARTD value Market value composition (1) and Coca-Cola Amatil Share 100% 50% 0% Sparkling Energy Dairy Juice Water Sports Tea Category size Source: Nielsen; internal estimates. October Coca-Cola Amatil 2017 Investor Day 85

86 STRONG PRODUCT PORTFOLIO We have a strong product portfolio that supports our position to capture growth in the NARTD market SPARKLING BEVERAGES TEA JUICE & DAIRY WATER & SPORTS Cola Tea Juice Water Flavours Flavoured Water Dairy Sports Added 250ml ASSP Added Fanta Orange Broaden our tea portfolio Added Nutriforce, Homestyle & Refresh Reviewing water Coca-Cola Amatil 2017 Investor Day 86

87 WE HAVE IMPROVED OUR ROUTE-TO-MARKET We are developing scale and have significantly improved our route-to-market execution; our geographic and customer reach combined with our multi-category approach makes us unique Geographic GEOGRAPHIC REACH reach Customer CUSTOMER REACH reach MULTI-CATEGORY MANUFACTURING CAPABILITY ROUTE-TO-MARKET EXECUTION COLD DRINK EQUIPMENT Coca-Cola Amatil 2017 Investor Day 87

88 STRONG LEADERSHIP TEAM Our senior leadership team has significant system and developing markets experience, and is delivering on our Accelerate to Transform strategy Kadir Gunduz Managing Director 26+ years system experience Turkey, Russia, Tanzania, Cambodia, Laos, Vietnam, Nepal, Sri Lanka, Middle East, North Africa, Iran, Indonesia, PNG Amit Singhal Capability Development Manager 8+ years system experience India, Indonesia Lakshman Peiris Marketing Director 18+ years system experience Sri Lanka, Maldives, Vietnam, Nepal, Laos, Middle East, North Africa, PNG, Indonesia Bruce Waterfield Business Services Director 28+ years system experience Australia, Indonesia, PNG Mark Payne Sales Director 37+ years system experience Australia, Indonesia Deborah Nova HR & IT Director 21+ years system experience Indonesia Patrick Pech Research & Development Director 17+ years system experience Indonesia, Kenya, Sri Lanka, Cambodia, Morocco, Algeria Gigy Phillip Supply Chain Director 21+ years system experience Australia, Indonesia, PNG Simon Unterberger Corporate Planning Manager 9+ years system experience Australia, Indonesia, South Korea Lucia Karina Public Affairs & Communications Director 2+ years system experience Indonesia Thomas Praming Finance Director 6+ years system experience Middle East, North Africa, Indonesia, PNG Coca-Cola Amatil 2017 Investor Day 88

89 ACCELERATE TO TRANSFORM Coca-Cola Amatil 2017 Investor Day 89

90 TRANSACTION WITH THE COCA-COLA COMPANY Our transaction with The Coca-Cola Company in 2015 established clear growth and return objectives for the business TRANSACTION OVERVIEW In 2015, The Coca-Cola Company acquired a 29.4 per cent interest in our Indonesian business The transaction included Coca-Cola Amatil receiving USD500 million The transaction was undertaken to give us the capital to fund the growth capex in Indonesia to achieve the market s potential LONG-TERM MARKET LEADERSHIP Targeting a strong market position (by volume and value) in sparkling beverages Targeting a market leadership position (by value) in NARTD Targeting above market volume growth for the next 10 years ECONOMIC RETURNS ROCE above WACC by 2020 EBIT margin of 10% by 2023 Cost growth to be less than inflation Coca-Cola Amatil 2017 Investor Day 90

91 AN EFFECTIVE GOVERNANCE STRUCTURE We have an effective governance structure, creating closer alignment with The Coca-Cola Company GOVERNANCE BOARD OF COMMISSIONERS Board of Commissioners Amatil: 3 nominees The Coca-Cola Company: 2 nominees PRESIDENT DIRECTOR / CEO Alison Watkins Coca-Cola Amatil Group Managing Director Martyn Roberts Coca-Cola Amatil Group Chief Financial Officer David Browning Coca-Cola Amatil Head of Strategy Kadir Gunduz Managing Director, Indonesia & PNG Krishnakumar Thirumalai KK TCCC Region Director India, Bangladesh, Sri Lanka and Nepal Wadih Khayat TCCC Chief Financial Officer Asia Pacific Group Coca-Cola Amatil 2017 Investor Day 91

92 ACCELERATE TO TRANSFORM In 2014, we committed to the Accelerate to Transform strategy Focus how we ve changed our strategy Strategic priorities what we said we d do Supported by a number of enablers 2013 Niche 1. Improve product availability 1. Investing in capacity to sustain growth Indonesian population 2. Increase affordability 2. Driving effective and efficient route to market execution Strong progress across all strategic priorities and enablers 2014 onwards Mass market 3. Build brand strength 3. Driving cost competitiveness Indonesian population 4. Build channel relevance 4. A more agile and responsive system Coca-Cola Amatil 2017 Investor Day 92

93 STRATEGIC PRIORITY 1 IMPROVE PRODUCT AVAILABILITY Based on our Every Dealer Survey of 1.4 million outlets, at least one of our categories is stocked in ~67 per cent of NARTD outlets in Indonesia THE OPPORTUNITY (1) 5 Amatil Categories 4 Amatil Categories 3 Amatil Categories OUR APPROACH Undertake significant market insights research proprietary knowledge database OUR PROGRESS 0 Amatil Categories 1.4M+ outlets surveyed Outlet base increased by >245,000 outlets in 3 years 2 Amatil Categories ~3 MILLION NARTD OUTLETS IN INDONESIA (2) Percentage that stocks the category Of those that stock the category, percentage that stocks Amatil Water ~95% ~6% 1 Amatil Category Tea ~86% ~18% Sparkling ~71% ~95% 1. Source: Coca-Cola Amatil Indonesia estimates from Every Dealer Survey. 2. Source: Nielsen. September Juice ~56% ~43% Coca-Cola Amatil 2017 Investor Day 93

94 STRATEGIC PRIORITY 1 IMPROVE PRODUCT AVAILABILITY Salesforce: improving product availability by having a more skilled salesforce INCREASED SALESFORCE SALES CAPABILITY DEVELOPMENT PROGRAM 3,576 3,910 4,258 4,552 Objective: Invest in the capability of our people and move from single product focus selling to range selling Progress: ~3,000 people undertaken the necessary training in 2017 (19,000+ training days) DEDICATED WHOLESALE TEAM Objective: Create a dedicated team focussed on key accounts with wholesalers Progress: 207 dedicated wholesaler manager appointments since 2014 Coca-Cola Amatil 2017 Investor Day 94

95 STRATEGIC PRIORITY 1 IMPROVE PRODUCT AVAILABILITY Cold drink equipment: improving product availability through cold drink equipment rollout with an additional 50,000 pieces of equipment deployed in the market since 2014 COMPETITIVE ADVANTAGE COLD DRINK EQUIPMENT IN MARKET Approximately 348,000 pieces of cold drink equipment in the market Increase of 17 percent over the past three years Targeting plan of an additional 20,000 coolers to be purchased and placed in 2018 Focus on range selling (4+ categories) and productivity improvements Opportunity to improve cold drink equipment compliance through better monitoring and compliance Targeting 20,000 additional pieces of cold drink equipment to be placed in the market during 2018 Coca-Cola Amatil 2017 Investor Day 95

96 STRATEGIC PRIORITY 2 INCREASE AFFORDABILITY Increasing affordability through price reset in 2014 and launch of smaller pack sizes across the portfolio SPARKLING BEVERAGES AFFORDABILITY TEA & JUICE AFFORDABILITY Price Rebase 1.5L IDR 15,000 IDR 11,000 Price Rebase 1.0L PET IDR 10,000 IDR 9, ml PET IDR 5,000 New packaging 390ml PET IDR 4,500 New packaging 250ml PET IDR 3,500 New packaging 300ml cup IDR 2,000 New packaging 180ml carton IDR 3,000 New packaging 350ml PET IDR 4,000 New packaging 900ml PET New packaging 750ml PET Price reset in 2015 and introduction of new pack sizes is gaining traction New pack sizes, new packaging and new products Coca-Cola Amatil 2017 Investor Day 96

97 STRATEGIC PRIORITY 2 INCREASE AFFORDABILITY Targeting price point competitiveness with smaller comparable pack sizes SPARKLING BEVERAGES AFFORDABILITY TEA & JUICE AFFORDABILITY Comparative price points Smaller pack sizes Comparative price points Smaller pack sizes Product variation 390ml PET IDR 4, ml PET IDR 4, ml PET IDR 3, ml PET IDR 4, ml PET IDR 4, ml cup IDR 2,000 Refresh Lower Juice Content IDR 2,000 Nutriforce Offer Vitamin & Mineral ID 3,000 Achieving improved affordability through comparative price points, smaller pack sizes and product variation Coca-Cola Amatil 2017 Investor Day 97

98 STRATEGIC PRIORITY 3 BUILD BRAND STRENGTH Increased media spend and changed the composition, as well as focussing on brand building activities MEDIA SPEND HAS BEEN INCREASED Media Spend CATEGORY AND BRAND BUILDING Advertising: showcasing consumption occasions Sparkling increase relevance and recruitment Dial up freshness and natural associations New packaging for Sprite and Fanta Maximise FIFA World Cup opportunities Juice Total Juice Solution Minute Maid Homestyle flavour expansion Minute Maid Nutriforce: vitamin enhanced Minute Maid Nutriboost in carton packaging F Sparkling (excl Sprite) Sprite Stills Tea target the original Tea segment Revitalised visual identity Comprehensive marketing campaign Coca-Cola Amatil 2017 Investor Day 98

99 STRATEGIC PRIORITY 3 BUILD BRAND STRENGTH Sparkling: Increase relevance and drive teens recruitment MOST LOVED & CONSUMED BRANDS FOR TEENS & YOUNG ADULTS DRIVE RELEVANCE REASON TO CONSUME DRIVE RECRUITMENT THROUGH AFFORDABILITY PACK LEVERAGE PASSION POINTS TO DRIVE EXCITEMENT NEW SPRITE Dial up freshness & Natural associations through Lemon Lime Drive In Home & Away from home Occasions NEW FANTA Bold, fruity, great tasting Intensifying fun with friends FIFA WORLD CUP PROMO through moments that made special with Coke + FWC merchandise Coca-Cola Amatil 2017 Investor Day 99

100 STRATEGIC PRIORITY 3 BUILD BRAND STRENGTH Juice: Total Juice Solution Coca-Cola Amatil 2017 Investor Day 100

101 STRATEGIC PRIORITY 3 BUILD BRAND STRENGTH Tea: Establish Frestea in Original Segment (80% of the market) Coca-Cola Amatil 2017 Investor Day 101

102 STRATEGIC PRIORITY 4 BUILD CHANNEL RELEVANCE Developed a customer value proposition program to deliver the appropriate service level PRODUCT RANGE MODERN TRADE Hypermarkets Supermarkets Minimarkets PRICE / PACK ARCHITECTURE DELIVERY FREQUENCY CALL TYPE & FREQUENCY COOLER AVAILABILITY TRADITIONAL TRADE Pushcarts Provision Wholesalers IN-STORE EXECUTION PROMOTIONAL PROGRAMS Coca-Cola Amatil 2017 Investor Day 102

103 ENABLER 1 INVESTING IN CAPACITY TO SUSTAIN GROWTH Since 2014, we have invested approximately USD270 million in new production facilities and production lines INCREASED CAPACITY SINCE 2014 AFFORDABLE SMALL SPARKLING PACK LINE 9 new lines commissioned 5 new preform lines commissioned 2 new mega distribution centres commissioned Increased manufacturing capacity by 150 million unit cases Also resulted in reduction of out-of-stocks by 6.8 percentage points Commissioned the ASSP line in April 2017, additional investment in USD 29.8mil Coca-Cola Amatil 2017 Investor Day 103

104 ENABLER 2 DRIVING EFFECTIVE ROUTE-TO-MARKET EXECUTION Significantly improving our effectiveness and efficiency with our route-to-market model COCA-COLA OFFICIAL DISTRIBUTORS We have established 24 Coca-Cola Official Distributors ( CCODs ) in Jakarta, 161 across the rest of Java and an additional 159 in Bali and Sumatra Targeting an additional 123 CCODs to be established in 2018 across Kalimantan, Southern Sulawesi & PuMa Better capability to execute last mile delivery Change in delivery model targeting improvement in delivery time from 48 hours to 24 hours Incentivised based on performance Delivery rate, stock cover & safety measures Island CCOD ROLLOUT Established CCODs Additional planned CCODS Jakarta 24 0 Java (excl Jakarta) Bali 19 0 Sumatera Outer Islands (Kalimantan, Southern Sulawesi, PuMa) Jakarta completed 2015 Java completed 2016 Bali & Sumatra completed in 2017 Coca-Cola Amatil 2017 Investor Day 104

105 ENABLER 3 DRIVING COST COMPETITIVENESS We have improving our efficiency across the organisation since 2014 OPERATING EFFICIENCY LOGISTICS EFFICIENCIES SAFETY & HAZARD IDENTIFICATION HEADCOUNT OPTIMISATION & LABOUR PRODUCTIVITY GAINS System enhancements has led to improved operating efficiency 14 percent improvement in OEE Logistics function transforming in line with the route-tomarket program Significant reduction in handling rates Injury Frequency Rate (TRIFR) improvement of ~40 percent since 2015 Reduction in consumer complaints Reduction in out of stocks Added ~1,000 sales roles Overall net headcount reduction ~3,000 Significant labour productivity gains Improved unit case per FTE by 42 percent Our strategy is supported by implementing a range of productivity and efficiency programs across the business to improve competitiveness Coca-Cola Amatil 2017 Investor Day 105

106 ENABLER 4 A MORE AGILE AND RESPONSIVE SYSTEM Capability development: we are investing significantly in the development of our people to drive a strong organisation for the future TRAINING ACADEMIES LEADERSHIP Sales Technical Academy Logistics Technical Academy Leadership Framework Supply Chain Technical Academy OHS Technical Academy CDES Technical Academy HR Technical Academy Finance Technical Academy PAC Technical Academy Tailored Leadership Programs Our strategy is supported by a strong focus on developing our people and our leadership capabilities Coca-Cola Amatil 2017 Investor Day 106

107 ACCELERATE TO TRANSFORM Our Indonesian growth strategy priorities and enablers Focus how we ve changed our strategy Strategic priorities what we said we d do Supported by a number of enablers 2013 Niche 1. Improve product availability 1. Investing in capacity to sustain growth Indonesian population 2. Increase affordability 2. Driving effective and efficient route to market execution Strong progress across all strategic priorities and enablers 2014 onwards Mass market 3. Build brand strength 3. Driving cost competitiveness Indonesian population 4. Build channel relevance 4. A more agile and responsive system Coca-Cola Amatil 2017 Investor Day 107

108 INDONESIA: SUMMARY SUMMARY 1. Indonesia overview The Indonesian economy is large and growing Indonesia will be a top five global economy by 2050 Apart from some recent disruption, NARTD growth has been strong, in line with GDP 2. Our position With our partner, we are long term operators in Indonesia Our geographic and customer reach and multi-category approach give us unique advantages 3. Accelerate to transform In 2014 we committed to the Accelerate to Transform strategy We made important changes to improve our relationship, including welcoming The Coca-Cola Company as a direct shareholder in Coca-Cola Amatil Indonesia Our execution has been strong since 2014 and we have a much leaner and more productive business, albeit growth has been slower than we targeted Coca-Cola Amatil 2017 Investor Day 108

109 QUESTIONS Kadir Gunduz & Alison Watkins Coca-Cola Amatil 2017 Investor Day 109

110 APPENDIX Coca-Cola Amatil 2017 Investor Day 110

111 ALCOHOL & COFFEE Shane Richardson Managing Director Alcohol & Coffee Coca-Cola Amatil 2017 Investor Day 111

112 ALCOHOL & COFFEE: PRESENTATION OVERVIEW OVERVIEW 1. Our history We are a well established business We are accelerating our growth through brand partnerships and owned brands 2. Our strategy We have strong competitive advantages We are delivering on our strategy, focussing on the core and accelerating emerging opportunities 3. Our growth opportunities We hold strong positions in Australia and are pursuing additional growth in emerging markets Coca-Cola Amatil 2017 Investor Day 112

113 OUR HISTORY & STRATEGY Coca-Cola Amatil 2017 Investor Day 113

114 WE ARE A WELL ESTABLISHED BUSINESS ALCOHOLIC BEVERAGE COMPANIES IN AUSTRALIA VIDEO Rank (1) Companies 1 CUB 2 Lion 3 Diageo 4 Coca-Cola Amatil 5 Treasury Wine 6 Pernod Ricard 7 Asahi 8 Brown Forman 9 Accolade Wines 10 Coopers 4 th largest alcohol beverage company in Australia Investing in our business and developing our people 1. Source: Aztec. Total Liquor Australia Off-Premise Dollar Sales. (Ex/p label), MAT to 04/06/2017 Coca-Cola Amatil 2017 Investor Day 114

115 WE ARE ACCELERATING OUR GROWTH THROUGH BRAND PARTNERSHIPS AND OWNED BRANDS 2005 & 2006 Amatil enters Coffee & Alcohol Acquired the Australian Bitters brand in Australia Coca-Cola Amatil 2017 Investor Day 115

116 OUR COMPETITIVE ADVANTAGES With strong brand partners, a leading portfolio from brand partner and owned brands, and the ability to leverage a world-class route-to-market, we are well positioned to pursue growth opportunities LEAD EXECUTE PARTNER LEADING BRANDS OWNED BRANDS ROUTE-TO-MARKET STRONG PARTNERSHIPS Access to world-class brands Freedom to innovate and build scale Leverage route to market with scale/reach and large scale low cost infrastructure Partnerships that deliver value creation Coca-Cola Amatil 2017 Investor Day 116

117 OUR STRATEGY We are delivering double-digit earnings growth CORE ESTABLISHED BUSINESS GROWTH Strengthening category leadership position in spirits and RTDs Brand-led growth for Grinders Transformational growth in Paradise Beverages ACCELERATION OF EMERGING GROWTH OPPORTUNITIES Acceleration to scale in beer and cider International growth opportunities Coca-Cola Amatil 2017 Investor Day 117

118 OUR GROWTH OPPORTUNITIES Coca-Cola Amatil 2017 Investor Day 118

119 AUSTRALIA ALCOHOL We are targeting to maintain positions in mainstream spirits and RTDs and grow in premium spirits; targeting to build our core in beer and cider and accelerate in craft beer SPIRITS & RTDs BEER & CIDER Coca-Cola Amatil 2017 Investor Day 119

120 THE AUSTRALIAN BEER MARKET The Australian beer market is becoming increasingly fragmented which presents growth opportunities BEER VOLUME SHARE BY BRAND (9LE) 48% 53% 269 Brands 349 Brands 52% Share 47% Share MAT to 02/11/2014 MAT to 30/04/2017 Source: IRI Beer Off Premise Volume Scan MAT to 30/04/2017 Independent Brewers Association Carlton XXXX VB Tooheys Other The number of craft brewers has increased from 30 to 379 in the last decade Coca-Cola Amatil 2017 Investor Day 120

121 THE BEER MARKET IS AN EXCITING GROWTH OPPORTUNITY Our portfolio is positioned in growth segments of the market BEER AND CIDER SEGMENT MAP #5 Premium Intl. #1 Flavoured Beer #13 Premium International #9 Craft Australian #16 Craft Australian Category Average #1 Flavoured Cider #3 Cider Brand Coca-Cola Amatil 2017 Investor Day 121

122 AUSTRALIA COFFEE We are delivering a strong brand-led growth strategy for Grinders, giving us the credibility to expand to new markets BRAND-LED GROWTH Full Brand Refresh GROW NEW MARKETS Out of Home Building credibility New Products Coca-Cola Amatil 2017 Investor Day 122

123 INTERNATIONAL OPPORTUNITIES We are targeting international expansion opportunities with existing and new brands within our portfolio INTERNATIONAL ALCOHOL OPPORTUNITIES INTERNATIONAL COFFEE INDONESIA Coca-Cola Amatil 2017 Investor Day 123

124 INTERNATIONAL OPPORTUNITIES Coca-Cola Amatil owned brands with international opportunities INTERNATIONAL ALCOHOL OPPORTUNITIES MAJOR MILESTONES Export beer market growth China, Hong Kong, Taiwan, US, American Samoa Rum now in Europe and significant opportunity; obtained approvals for to enable sales in US Coca-Cola Amatil 2017 Investor Day 124

125 INTERNATIONAL OPPORTUNITIES Indonesia A growing coffee market and coffee culture INTERNATIONAL COFFEE INDONESIA INTERNATIONAL COFFEE INDONESIA Coca-Cola Amatil 2017 Investor Day 125

126 COFFEE INDONESIA We have partnered with a global leader in coffee equipment, developed a portfolio for the Indonesian consumer, and have already signed up customers with significant reach PARTNER PORTFOLIO CUSTOMERS Grinders Coffee connoisseur Fix Flavour Infused Latte s Romanza Flavoured Hot Beverages Caffitaly a global leader in coffee equipment Developing a portfolio for the Indonesian consumer Strong customers with significant reach Coca-Cola Amatil 2017 Investor Day 126

127 COFFEE INDONESIA Coffee machines for different channels FOOD RETAIL HORECA MACHINE AND CAPSULES Premium Premium capsules Mid level Professional Entry level Milk Frother Coca-Cola Amatil 2017 Investor Day 127

128 COFFEE INDONESIA Coca-Cola Amatil 2017 Investor Day 128

129 COFFEE INDONESIA Our customer base has exceeded initial expectations HYPERMART PRIMO FOOD MART SMART CLUB MAXX KITCHEN LIPPO GROUP HOTELS LIPO GROUP HOSPITALS RANCH MARKET FARMER S MARKET HERO LOTTE ALFAMART CARREFOUR Launching December 2017 Coca-Cola Amatil 2017 Investor Day 129

130 ALCOHOL & COFFEE: PRESENTATION SUMMARY SUMMARY 1. Our history We are a well established business We are accelerating our growth through brand partnerships and owned brands 2. Our strategy We have strong competitive advantages We are delivering on our strategy, focussing on the core and accelerating emerging opportunities 3. Our growth opportunities We hold strong positions in Australia and are pursuing additional growth in emerging markets Coca-Cola Amatil 2017 Investor Day 130

131 VONU EXPORT VIDEO Coca-Cola Amatil 2017 Investor Day 131

132 QUESTIONS Shane Richardson & Alison Watkins Coca-Cola Amatil 2017 Investor Day 132

133 FINANCE OVERVIEW Martyn Roberts Group Chief Financial Officer Coca-Cola Amatil 2017 Investor Day 133

134 FINANCE UPDATE: PRESENTATION OVERVIEW OVERVIEW 1. EPS drivers Modest capex for developed markets; Growth capex for Indonesia funded via equity injection from The Coca-Cola Company; Continuous working capital management; Bolt-on acquisitions; Capital management initiatives 2. Targeting Shareholder Value Creation Attractive dividends: above 80% payout ratio; Strong balance sheet; Strong return on capital employed 3. Additional updates We will also continue to explore opportunities to extract value from our property portfolio 2017 non-trading items: one off costs associated with Australian Beverages cost optimisation initiatives will be offset by the one off gain from the sale of our Richlands facility in Queensland Coca-Cola Amatil 2017 Investor Day 134

135 FINANCE OVERVIEW Financial discipline is fundamental to our Shareholder Value Proposition EPS drivers Targeting shareholder value creation Additional Updates 1 Modest capex for developed markets Mid single-digit EPS growth 9 Property Division 2 Growth capex for Indonesia funded via TCCC equity injection 6 Attractive dividends: above 80% payout ratio 10 + Non-trading items 3 Continuous working capital management 7 Strong balance sheet 4 5 Bolt-on acquisitions Capital management initiatives 8 Strong return on capital employed Coca-Cola Amatil 2017 Investor Day 135

136 1. MODEST CAPEX FOR DEVELOPED MARKETS Step up in 2017 to drive cost optimisation and growth initiatives Australia and New Zealand capital expenditure (AU$M) and capital expenditure to depreciation (x) $M Depreciation (x) COMMENTARY Step up in 2017 and 2018 reflecting investment in Australian Beverages for Richlands warehouse automation and investment in additional value added dairy and juice capacity Main requirements are for cold drink equipment and IT investment to support strategy Excluding the construction of the warehouse at Richlands, Australian 2017 capex is expected to be around $130 million to $135 million - FY12 FY13 FY14 FY15 FY16 FY17F -1.0 Australia New Zealand Total Capex / D&A Coca-Cola Amatil 2017 Investor Day 136

137 2. GROWTH CAPEX FOR INDONESIA FUNDED VIA TCCC EQUITY INJECTION Significant operational efficiencies have been delivered which has reduced the short term requirement for capital expenditure Indonesia cumulative capital expenditure from April 2015 (US$M) 700 Illustrative 600 ~US$500M COMMENTARY April 2015 TCCC invested USD500 million for a 29.4% interest in the Indonesian business Funds ring-fenced for growth capex in Indonesia ~US$50M FY15 FY16 FY17F FY18 FY19 FY20 Capex is focussed on cold drink equipment to support route-to-market strategy; production plants and lines consistent with capacity requirements from increasing demand and distribution centres Disciplined use of capital as required We have sufficient funds for capital investment through to around 2020 depending on volume growth Operating cash flow positive and expect to be able to self fund from 2020 Coca-Cola Amatil 2017 Investor Day 137

138 3. CONTINUOUS WORKING CAPITAL MANAGEMENT Focus on sustainable working capital across the group Working capital core developed markets and developing & growth markets ($M) COMMENTARY Core developed markets stabilised with a view to improve (Australia & New Zealand) Committed to supporting growth markets such as Indonesia and Alcohol & Coffee 400 $M Particular focus on inventory in the short term FY13 FY14 FY15 FY16 Core Developed Markets (Aus/NZ) Developing/Growth Markets Coca-Cola Amatil 2017 Investor Day 138

139 4. BOLT ON ACQUISITIONS History of bolt-on acquisitions, divestments and significant joint ventures Neverfail Quirks Grinders SPC Pacific Beverages Maxxium Paradise Beverages Australian Beer Co Beam Suntory (re-sign) MCI Miller Feral Brewing Pacific Beverages Quirks Sufficient balance sheet capacity to pursue bolt on acquisitions Consistent with Australian Beverages and Alcohol & Coffee strategies Coca-Cola Amatil 2017 Investor Day 139

140 5. CAPITAL MANAGEMENT $350M share buyback program completed in November Share buy back program -5.2% COMMENTARY $350 million share buyback program announced in February Program completed on 9 November 2017 Acquired 39.6 million shares at an average price of $8.84 Resulting in 723,989,498 shares on issue Further capital management initiatives may be considered in the future Before share buyback After buy back Coca-Cola Amatil 2017 Investor Day 140

141 7. ATTRACTIVE DIVIDENDS: ABOVE 80 PERCENT PAYOUT RATIO Share buyback has not changed our policy to pay above 80 per cent payout ratio Use of operating cash flow and dividend payout ratio $M 1,400 1,200 1,000 Payout ratio 100.0% 90.0% 80.0% COMMENTARY Modest capex in developed markets and self funded growth capex in Indonesia combined with continuous working capital management allows us to continue to target a dividend payout ratio above 80 per cent during the current business cycle FY13 FY14 FY15 FY16 1H % 60.0% 50.0% 40.0% 1H17 dividend kept at the same cents per share as 1H16 $350 million share buy back program completed in 2H17 Continue to target payout ratio of over 80 per cent Operating cash flow Net investing activities Dividends paid Equity injection Buyback Coca-Cola Amatil 2017 Investor Day 141

142 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, STRONG BALANCE SHEET Balanced debt maturities profile Balance between certainty and cost for interest profile Weighted average maturity of group committed facilities is 5.3 years for $2.4B 100% Weighted average fixed rate maturity of 3.5 years H % 17% 6% 23% 13% 40% 80% 60% 40% 20% 0% 1H Cash / undrawn facilities Committed facilities Fixed Floating Diverse and cost effective funding Credit ratings and metrics - S&P BBB+ (stable) / Moody s A3 (stable) Net Debt* : EBITDA Net interest cover Bank Debt AUD & NZD domestic bond USPP (A$) 1,871 1, ,267 Euro Medium Term Note Market (A$ and JPY) FY13 FY14 FY15 FY16 Net Debt* : EBITDA FY14 FY15 FY16 1H17 Net Debt EBIT Interest Cover as at 1H2017 *as at year-end Coca-Cola Amatil 2017 Investor Day 142

143 9. FOCUS ON RETURN ON CAPITAL EMPLOYED Return on capital employed (1) (%) COMMENTARY Return on Capital continues to be significantly above our cost of capital FY12 FY13 FY14 FY15 FY16 1H17 1.Return on capital employed is calculated as EBIT before significant items, divided by the average of the assets and liabilities operating and investing (net assets of the Group excluding net debt) at the beginning and at the end of the twelve-month period ended as at the balance date. Coca-Cola Amatil 2017 Investor Day 143

144 10. PROPERTY DIVISION In 2017 we established a Property Division to develop a group wide approach to optimising arrangements for owned and leased property PROPERTY DIVISION PORTFOLIO MANAGEMENT PORTFOLIO OPTIMISATION Established January 2017 Holds land and building assets associated with key production and warehousing facilities in Australia and New Zealand Businesses are charged rent in line with market rates Updated segment assets communicated to the market in August 2018 A portfolio of 270 properties and facilities across six countries Rolling out new Property Management System Reviewing Facilities Management process Reviewing Australian and New Zealand property footprint Successfully exited 30 properties over last 18 months producing rental savings of $3.8 million per annum Reviewing owned property portfolio to develop long-term strategies in conjunction with operational strategies Developing 10 year plus master plans for major manufacturing assets Identify surplus assets that could be consolidated or divested Working through re-zoning and redevelopment opportunities to capture upside value before divesting Assessing on a case by case basis the need to own assets or release capital through long term strategic leasebacks Coca-Cola Amatil 2017 Investor Day 144

145 11. NON-TRADING ITEMS We plan to offset the one-off costs with one-off gains in 2017 from the sale of our Richlands facility Indicative profile of one-off gains and one-off costs in 2017 (treated as non-trading items) COMMENTARY ~$5M ~$40M ~$25M ~$30M One-off costs 1H17 Restructuring 1H17 Thebarton ~$100M One-off gains 2H17 Restructuring 2H17 Thebarton Sale of Richlands facility Non-trading items related to: One-off costs in Australian Beverages related to cost optimisation initiatives One-off gain from Property Division related to the sale of Richlands We entered into arrangements for the sale and leaseback on our Richlands facility in June 2017 We expect to receive approximately ~$100 million before tax to be recognised in 2H17 following settlement of sale (1-Dec) Expected that this will be substantially realised as profit after tax due to the utilisation of capital losses We have commenced the process for the sale of Thebarton but not able to provide an estimate of the expected gain The one-off gains and one-off costs will be treated as non-trading items Coca-Cola Amatil 2017 Investor Day 145

146 FINANCE UPDATE: PRESENTATION SUMMARY SUMMARY 1. EPS drivers Modest capex for developed markets; Growth capex for Indonesia funded via equity injection from The Coca-Cola Company; Continuous working capital management; Bolt-on acquisitions; Capital management initiatives 2. Targeting Shareholder Value Creation Attractive dividends: above 80% payout ratio; Strong balance sheet; Strong return on capital employed 3. Additional updates We will also continue to explore opportunities to extract value from our property portfolio 2017 non-trading items: one off costs associated with Australian Beverages cost optimisation initiatives will be offset by the one off gain from the sale of our Richlands facility in Queensland Coca-Cola Amatil 2017 Investor Day 146

147 QUESTIONS Martyn Roberts Coca-Cola Amatil 2017 Investor Day 147

148 SUMMARY & OUTLOOK Alison Watkins Group Managing Director Coca-Cola Amatil 2017 Investor Day 148

149 SUMMARY OF MANAGEMENT PRESENTATIONS AUSTRALIAN BEVERAGES INDONESIA ALCOHOL & COFFEE FINANCE Coca-Cola Amatil 2017 Investor Day 149

150 GROUP: PRESENTATION OVERVIEW OVERVIEW 1. Our vison and our values Our vision and our values give us a clear and optimistic picture of success 2. Our strategy Our Group strategy has three distinct elements Our shareholder value proposition is based on a compelling investment case We have strong brand partners Our approach to sustainability will underpin our future performance updates In 2014 we set clear objectives for our business and performed well against many elements of our shareholder value proposition In 2017 our businesses are performing well however, we had a challenging start to the year for Australian Beverages We have delivered on our share buyback program and progressed the sale and leaseback of our Richlands facility We are expecting FY17 Group underlying NPAT to be broadly in line with FY16 Coca-Cola Amatil 2017 Investor Day 150

151 AUSTRALIAN BEVERAGES: PRESENTATION OVERVIEW OUTLOOK Our plans are growth-led and consistent with the low single digit earnings delivery objective, however more time is required to deliver The near term earnings (next 2-3 years) outlook will be impacted by accelerated reinvestment of cost savings to support our strategy and the uncertain impact of container deposit schemes The additional ~$40 million of investment in 2018 is not expected to be offset with cost savings in 2018 Our plan is to restore Australian Beverages to revenue and earnings growth but the accelerated reinvestment will have a negative impact on earnings in 2018 Cost of goods sold inflation is expected to be benign in 2018 OVERVIEW 1. Australian Beverages overview Australian Beverages is a strong business with significant competitive advantages The Australian NARTD beverages market is in growth We need to move faster to rebalance our portfolio 2. Accelerated Australian Growth Plan Our Accelerated Australian Growth Plan builds on our Lead, Execute, Partner strategy, amplifies several initiatives already in place and is underpinned by joint commitments with Coca-Cola South Pacific and an increased focus on revenue growth The accelerated reinvestment in 2018 of ~$40 million of cost savings which will be allocated towards initiatives covering increases in marketing, execution, cold drink equipment, digital technology and price 3. Container deposit schemes Australian Beverages near term earnings will also be impacted by the implementation of container deposit schemes in NSW, Queensland, ACT and Western Australia Coca-Cola Amatil 2017 Investor Day 151

152 INDONESIA: PRESENTATION OVERVIEW OVERVIEW 1. Indonesia overview The Indonesian economy is large and growing Indonesia will be a top five global economy by 2050 Apart from some recent disruption, NARTD growth has been strong, in line with GDP 2. Our position With our partner, we are long term operators in Indonesia Our geographic and customer reach and multi-category approach give us unique advantages 3. Accelerate to transform In 2014 we committed to the Accelerate to Transform strategy We made important changes to improve our relationship, including welcoming The Coca-Cola Company as a direct shareholder in Coca-Cola Amatil Indonesia Our execution has been strong since 2014 and we have a much leaner and more productive business, albeit growth has been slower than we targeted Coca-Cola Amatil 2017 Investor Day 152

153 ALCOHOL & COFFEE: PRESENTATION OVERVIEW OVERVIEW 1. Our history We are a well established business We are accelerating our growth through brand partnerships and owned brands 2. Our strategy We have strong competitive advantages We are delivering on our strategy, focussing on the core and accelerating emerging opportunities 3. Our growth opportunities We hold strong positions in Australia and are pursuing additional growth in emerging markets Coca-Cola Amatil 2017 Investor Day 153

154 FINANCE UPDATE: PRESENTATION OVERVIEW OVERVIEW 1. EPS drivers Modest capex for developed markets; Growth capex for Indonesia funded via equity injection from The Coca-Cola Company; Continuous working capital management; Bolt-on acquisitions; Capital management initiatives 2. Targeting Shareholder Value Creation Attractive dividends: above 80% payout ratio; Strong balance sheet; Strong return on capital employed 3. Additional updates We will also continue to explore opportunities to extract value from our property portfolio 2017 non-trading items: one off costs associated with Australian Beverages cost optimisation initiatives will be offset by the one off gain from the sale of our Richlands facility in Queensland Coca-Cola Amatil 2017 Investor Day 154

155 2017: EARNINGS UPDATE GROUP UNDERLYING NPAT Expecting FY17 underlying NPAT to be broadly in line with FY16 AUSTRALIAN BEVERAGES Challenging start to the year Improved recent revenue trajectory through new product launches and customer wins Delivering on cost optimisation program Subject to the impact of the New South Wales container deposit scheme commencing 1 December 2017 INDONESIA Recent macroeconomic conditions challenging with soft consumer offtake affecting our categories OTHER BUSINESSES Continuing to deliver growth in line with our expectations Coca-Cola Amatil 2017 Investor Day 155

156 OUTLOOK OUTLOOK Indonesia, Papua New Guinea, New Zealand, Fiji, Alcohol & Coffee and SPC are all expected to continue to deliver growth in line with our Shareholder Value Proposition Australian Beverages and consequently Group near term earnings will be negatively impacted by: Accelerated reinvestment of ~$40M of cost savings in 2018 in marketing, execution, cold drink equipment, digital technology to drive growth initiatives and in price to drive competitiveness; and The uncertain impact of container deposit schemes We are committed to our Shareholder Value Proposition targeting a return to delivery of mid-single digit earnings per share growth in the medium term This will depend on the success of revenue growth initiatives in Australia, Indonesian economic factors and regulatory conditions in each of our markets Coca-Cola Amatil 2017 Investor Day 156

157 OUTLOOK CAPITAL EXPENDITURE 2017 Group capex expected to be around $325M 2018 Group capex expected to be around $425M This reflects initiatives to drive growth in Australian Beverages and continued investment in Indonesia DIVIDENDS Continue to target medium term dividend payout ratio of over 80 per cent It is anticipated that franking will be at a lower level than FY16 BALANCE SHEET Balance Sheet to remain conservative with flexibility to fund future growth opportunities Expecting to maintain strong return on capital employed We will also continue to explore opportunities to extract value from our property portfolio Coca-Cola Amatil 2017 Investor Day 157

158 QUESTIONS Alison Watkins Coca-Cola Amatil 2017 Investor Day 158

159 2017 INVESTOR DAY 24 November 2017 Jakarta, Indonesia Alison Watkins Group Managing Director Martyn Roberts Group Chief Financial Officer Kadir Gunduz MD Indonesia & PNG Peter McLoughlin MD Australian Beverages Shane Richardson MD Alcohol & Coffee David Akers Group Head of Investor Relations

160 CLOSE David Akers Group Head of Investor Relations Coca-Cola Amatil 2017 Investor Day 160

161 FRIDAY 24 NOVEMBER: OBJECTIVES UPDATES Group strategy 2017 initiatives and performance Australian Beverages Indonesia Alcohol & Coffee Group outlook Coca-Cola Amatil 2017 Investor Day 161

162 FRIDAY 24 NOVEMBER: BUSES TO AIRPORT BUS 1 Departs Hotel Mulia 14:30 If your plans change please let us know BUS 2 Departs Hotel Mulia 17:00 If your plans change please let us know Coca-Cola Amatil 2017 Investor Day 162

163 INVESTOR TOUR & PRESENTATIONS: THANKS THANKS Group Leadership Team Indonesian Leadership Team Indonesian Operational Team Content Development Team Working Group Team Coca-Cola Amatil 2017 Investor Day 163

164 2017 INVESTOR DAY 24 November 2017 Jakarta, Indonesia Alison Watkins Group Managing Director Martyn Roberts Group Chief Financial Officer Kadir Gunduz MD Indonesia & PNG Peter McLoughlin MD Australian Beverages Shane Richardson MD Alcohol & Coffee David Akers Group Head of Investor Relations

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